The study's goal was to assess the practice, challenges and prospect of SIP in primary schools of Dangila. A mixed research method with concurrent triangulation design was used in the methodology. Both quantitative and qualitative Data were used. Fifteen primary schools from Dangila town were selected from which a total of 105 teachers were sampled at random, whereas principals, supervisors, students’ representatives, Education leaders, education expert, and PSTA members are chosen intentionally. Questionnaires and interviews were used to collect data for this study. 138 respondents took part in the study; of these, 127 copies of both closed and open-ended questionnaires were given out to teachers, and principals. The information gathered from the questionnaires was then analyzed using statistical tools like frequency counts, percentages, mean scores, standard deviations independent t-test and simple linear regression. In order to support the findings of the quantitative analysis, the qualitative data collected through interviews were also evaluated qualitatively. The results in general showed that the practice of SIP in primary schools of Dangila town were medium extent. In addition, the overall factors had an impact on SIP practice with overall mean value (M = 4.17) and standard deviation (SD = 0.54). To test the significance difference between teachers’ and school principals’ responses; the researcher used independent t-test. The t- value (t (df) = 125 = 2.122)) with significant level (p = 0.036) is less than 0.05, shows that there is significance difference between the respondents opinion with the issue. According to R-square result, the impact of independent variables on SIP practice from high to low are the tenth model including all factors (60.2%); followed by the ninth model including the first nine factors (44.2%) and the eighth model including the first eight factors (39.9%). In the case of stepwise analysis, the last factor (professional support) increased it by 16%; followed by factor six (SIP committee commitment) increased it by 5.4% and followed by factor eight (material and financial resource) increased it by 4.5%. The result of research also showed about prospects were: teachers participate in continuous professional development program; Teachers and school leaders license and relicense policy currently implementing all over the country; a policy for a decentralization system that advocates the devolution of decision-making authority from the federal up to school level; the presence of new policy guidelines, However, it was suggested that regional, zone, woreda education offices and schools should allot adequate funding and design income-generating mechanisms to improve the quality of education.